Taxes 101

October 15, 2024
This comprehensive guide, written by a CPA, is the perfect primer for those seeking to understand the nuts and bolts of the U.S. tax system. The Internal Revenue Code has been described as a Frankenstein's monster of legislation. The book helps to elucidate and clarify the process dictated by that behemoth. Cagan begins with a history of tax levies across different countries and systems, then deftly addresses how various U.S. presidents have helped to shape and change tax policies. The remaining chapters address both the individual tax return and small-business tax returns. Subjects include itemized versus standard deductions, tax brackets and the marginal tax rate, estimated tax-payment requirements, the AMT (alternative minimum tax), money-saving strategies, and tax-return preparation and filing. Taxes 101 covers the most recent tax legislation, including the Tax Cuts and Jobs Act and the Inflation Reduction Act. This well-written, reader-friendly book will help taxpayers navigate the process of calculating and filing their tax returns correctly. Recommended for all general business collections.

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September 23, 2024
“There are a lot of things you can do to manage and minimize your tax burden,” according to this helpful primer on the U.S. tax system. Accountant Cagan (Starting a Business 101) explains that tax code is first written by Congress, then fleshed out by Internal Revenue Service regulations. Offering a crash course on filing income taxes, Cagan shows how to calculate adjusted gross income and warns that virtually every form of income, including bartering, needs to be reported. For small business owners, Cagan discusses which tax forms to use with which business structures (income from partnerships is reported on the partners’ personal tax returns, but “corporations must file Form 1120 annually”) and how to write off business expenses (longer-lasting items can justify deductions over several years). The most useful material covers how to take advantage of deductions for student loans and medical expenses, as well as how to minimize the tax burden of investments by, for instance, purchasing municipal bonds, which aren’t subject to federal income tax. Though the guidance isn’t detailed enough to replace a tax expert, the cogent explanations of the U.S. tax system’s major features will help mystified taxpayers get their bearings. Wide-ranging and written in straightforward prose, this delivers.

Starred review from February 1, 2025

CPA Cagan (Starting a Business 101) brings more than 20 years of tax experience to this excellent introduction to the U.S. tax system. In eight engaging and highly informative chapters, her book details the laws, theories, and history of taxes; provides tips for managing or minimizing tax burdens; and shares strategies on for improving financial wellness. This is not a step-by-step guide on how to complete a 2024 tax return. Instead, it is an overview of how the U.S. tax system evolved and how readers can make it work for them. Cagan's explanations of complex terms, tips on estimating taxes, and advice for dealing with the IRS are outstanding. The sections that outline where tax dollars go and the formulas various levels of government use to impose and allocate tax revenue also stand out. Cagan astutely addresses related topics as well, such as identity theft and managing taxes associated with a new business. The writing is clear, descriptive, and succinct, breaking down complex material in a way that's easy to understand. VERDICT A practical, exceptionally helpful guide with exceptional examples and expert insights on taxes.--Rob Tench

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